Federal student loan payments will remain paused for more than 8 million borrowers well into next year as the court battle over the Biden administration’s SAVE repayment plan continues.
The income-driven plan lowers borrowers’ monthly bills to as low as zero and offers a quicker pathway to the discharge of all remaining balances.
Before federal judges intervened, the Education Department enrolled more than 8 million borrowers, erasing more than $5 billion for 414,000 enrollees who initially owed $12,000 or less and had made 10 years of payments.
“The 8 million borrowers in SAVE and anyone who has applied for SAVE should expect to remain in interest-free general forbearance for six more months or longer as the Department re-programs its systems, pending further developments from the Eighth Circuit Court of Appeals,” a spokesperson for the Education Department told The Epoch Times on Oct. 22….